Builders Rise on Easing Reports; Zhenro Sinks: Evergrande Update

Chinese developers’ bonds and stocks rallied following reports on new regulations that would make it easier to tap cash from home presales, potentially easing a liquidity crunch. Zhenro Properties Group Ltd. plunged on bond-redemption worries.

The new regulation would replace legions of local rules across the country and allow builders to withdraw and use such proceeds after setting aside the amount required for project building, according to the reports. A Bloomberg Intelligence gauge of developer shares surged as much as 3.5%, while Chinese high-yield dollar bonds saw morning gains pared to 1 to 3 cents on the dollar, credit traders said.